SOUTHPORT, Conn.--(BUSINESS WIRE)--Sturm, Ruger & Company, Inc. (NYSE-RGR), announced today that for 2012,
the Company reported net sales of $491.8 million and fully diluted
earnings of $3.60 per share, compared with net sales of $328.8 million
and fully diluted earnings of $2.09 per share in 2011.

For the fourth quarter of 2012, net sales were $141.8 million and fully
diluted earnings were $1.00 per share. For the corresponding period in
2011, net sales were $93.2 million and fully diluted earnings were 54¢
per share.

The Company also announced today that its Board of Directors declared a
dividend of 40.4¢ per share for the fourth quarter, for shareholders of
record as of March 8, 2013, payable on March 22, 2013. This dividend
varies every quarter because the Company pays a percent of earnings
rather than a fixed amount per share. This dividend is approximately 40%
of net income.

Chief Executive Officer Michael O. Fifer made the following observations
related to the Company’s results:

Our earnings increased 77% in 2012, driven by the 50% growth in sales
and our ongoing focus on continuous improvement in our operations.

New product introductions were a significant component of our sales
growth as new product sales represented $182.0 million or 38% of
firearm sales in 2012. New product introductions in 2012 included:

the Ruger American rifle,

the 10/22 TakeDown rifle,

the SR22 pistol,

the 22/45 Lite pistol, and

the Single-Nine revolver.

Demand for our products outpaced the growth in overall industry demand
as measured by the National Instant Criminal Background Check System
(“NICS”) background checks (as adjusted by the National Shooting
Sports Foundation) for both the fourth quarter and twelve months ended
December 31, 2012 as illustrated below:

Period ended December 31, 2012

Q4

Twelve months

Increase in estimated Ruger Units Sold

from Distributors to Retailers

73%

63%

Increase in total adjusted NICS Background Checks

41%

28%

Cash generated from operations during 2012 was $87.2 million. At
December 31, 2012, our cash and cash equivalents totaled $31 million,
a decrease of $50 million from December 2011 due to the $87 million
special dividend paid in December. Our current ratio is 1.6 to 1 and
we have no debt.

In 2012, capital expenditures totaled $27.3 million, much of it
related to new products and the expansion of production capacity. We
expect to invest approximately $30 million for capital expenditures
during 2013.

In 2012, the Company returned $111.5 million to its shareholders
through the payment of dividends.

At December 31, 2012, stockholders’ equity was $95.0 million, which
equates to a book value of $4.93 per share, of which $1.61 per share
was cash and equivalents.

Today, the Company filed its Annual Report on Form 10-K for 2012. The
financial statements included in this Annual Report on Form 10-K are
attached to this press release.

The Annual Report on Form 10-K is available on the SEC website at www.sec.gov
and the Ruger website at www.ruger.com/corporate.
Investors are urged to read the complete Annual Report on Form 10-K to
ensure that they have adequate information to make informed investment
judgments.

About Sturm, Ruger

Sturm, Ruger was founded in 1949 and is one of the nation’s leading
manufacturers of high-quality firearms for the commercial sporting
market. Sturm, Ruger is headquartered in Southport, CT, with
manufacturing facilities located in Newport, NH and Prescott, AZ.

The Company may, from time to time, make forward-looking statements
and projections concerning future expectations.Such statements
are based on current expectations and are subject to certain qualifying
risks and uncertainties, such as market demand, sales levels of
firearms, anticipated castings sales and earnings, the need for external
financing for operations or capital expenditures, the results of pending
litigation against the Company, the impact of future firearms control
and environmental legislation, and accounting estimates, any one or more
of which could cause actual results to differ materially from those
projected.Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date made.The Company undertakes no obligation to publish revised
forward-looking statements to reflect events or circumstances after the
date such forward-looking statements are made or to reflect the
occurrence of subsequent unanticipated events.